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My friends and I are living in a rented house and I manage the house. Every month my account will receive(from my friends) an extra 20000 for paying rent and expenses. Plus i have a credit card with a limit of 40000. My current annual income of 2.1 lakh per annum.
I have the following quires:
Did i have to pay income tax for amount that i receive for paying rent and expense?
Did the credit card limit amount is taxable?
Did I have to pay income tax for amount that I receive for paying rent and expense?
No. This will not be treated as income. However in the long run this kind of arrangement can be tricky to manage. If there is a query from Income Tax, it would take some time and effort to evidence that this arrangement is for convenience. If this is going to be for quite sometime, see if you can open a joint expense account and transact from that account. This will segregate the income.
Did the credit card limit amount is taxable?
No it is not counted as income and hence there is no question of tax.
